A new mobile application, TAG, is now approved by the State Bank of Pakistan to operate the Electronic Money Institution, in the state. It has proudly become the recent most fintech startup app to get this clearance in Pakistan. It claims to be a super app that gives the option of having mobile wallets and debit cards for its users. Making all transactions, money transfers, payments, and credit top ups far easier with a single click on the internet.
State Bank Approves Another Startup to Operate as Electronic Money Institution
TAG intends to start its pilot operations under the regulations of State Bank in the next few months before the commercial launch. This innovation in the digital payments for Pakistan is expected to bring an exponential rise as well as empower the growth of the country, as discussed by the CEO of TAG.
This shows the will to attain a healthy rise in the Electronic Money Institution regulation made by State Bank that followed startup initiatives like Nayapay, Sadapay, Wemso and Finia. The need of having mature digital payments in Pakistan was then noted during the lockdown in March where there was a huge rise in the interbank fund transfers, that hit its peak in May.
The Electronic Money Institution regulation was launched by the State Bank last year that consisted of five-pronged objectives. The purpose of these objectives was basically to provide a regulatory framework for the Electronic Money Institution and innovative payment services to the masses.
It also aimed to have minimized requirements for better deliverance of payment services, cost effectiveness, permissible activities of agents of the institution to be outlined, baseline for protection of customers, and obtain the State Bank’s goal of digital payments and financial inclusion.